Setting up Your Business in Belgium: GEOS Guide for Global Expansion

This is apart of our weekly series associated with the The Global Subsidiary Index. The series is designed to help businesses identify the best countries for establishing a subsidiary based on key operational factors. GEOS provides a data-driven ranking of jurisdictions worldwide, assessing across 40+ criteria to bring you insights into global expansion opportunities.

Each country on the index is scored on an overall score out of 100, with each individual criterion out of 5 or 10. Higher scores indicate a more favorable environment for businesses. By leveraging these insights, companies can make informed decisions on where to establish a legal presence.

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Want to grow your business in Belgium? You’re not alone. Belgium ranks 5th in Europe for foreign direct investment – and it’s easy to see why. The country offers a central location, strong infrastructure, and access to EU markets. But setting up a business here takes more than just interest.

In the last decade, the number of tech companies leaving Brussels has more than tripled. That jump shows how fast the landscape is changing—and why getting it right from the start matters.

This guide walks you through what to expect, what to plan for, and how GEOS helps make your move into Belgium smoother and more strategic.

Why Should You Expand to Belgium?

Belgium may be compact, but it offers strong access to EU markets, world-class infrastructure, and multilingual talent. Innovation gets real support through tax breaks and business incentives. The rules can be complex, but with the right plan, you can easily set up a business in Belgium.

A Strategic Gateway to Europe

Belgium scores 59.6 on the GEOS Global Subsidiary Index, ranking high among European countries for business expansion. It sits in the middle of Western Europe, with fast access to Germany, France, the Netherlands, and the UK. That makes it a great launchpad for regional growth.

The country also has top-tier logistics. The Port of Antwerp is the second-largest in Europe. Major international airports keep people and goods moving with ease. Infrastructure like this helps businesses scale faster.

Brussels brings even more value. It’s home to EU institutions, NATO, and many global company headquarters. The Brussels-Capital Region is a top pick for foreign investors. It offers strong transport links, reliable services, and a central location.

That said, it’s not all smooth sailing. Belgium scores just 4 out of 10 for ease of doing business. Red tape can slow things down, and labor laws are strict and not always flexible. Companies need to plan for extra admin and legal work.

Overall, Belgium gives you reach, resources, and credibility. But you’ll need patience and a solid local strategy to grow your business in Belgium.

Competitive Tax System & Business Incentives

Belgium gives businesses strong tax incentives, especially for R&D. The corporate tax rate is 25%, but SMEs pay just 20% in income tax on the first €100,000 of income. If your business earns over €25,000 in taxable supplies, you’ll need to register for VAT.

Innovation gets extra support. The Innovation Income Deduction (IID) lowers the tax rate on qualifying IP income to 3.75%. This applies to things like patents, software from R&D, and certain drug exclusivity rights. From 2025, you can also convert the deduction into a tax credit and carry it forward if needed.

Belgium also offers investment deductions for things like green tech, zero-emission trucks, and digital tools. These incentives will follow a new system starting in 2025. It splits deductions into three tracks—general, thematic, and tech—each with its own rate and rules.

Companies can also get a partial exemption on wage withholding taxes for R&D employees. If your team qualifies, you can exempt up to 80% of wage tax. But you need to notify Belspo before starting the project and follow set processes. You can’t combine this with the R&D tax credit for the same costs.

Foreign income gets some relief too. Belgium allows foreign tax credits (FTCs) for interest and royalty income, if it’s taxed abroad. Dividends usually don’t qualify, though. The FTC rules are complex and have strict limits.

Overall, Belgium supports businesses that invest in innovation. You can lower your tax bill, but you’ll need to keep records clean and meet all the conditions. Plan ahead, and the system can work in your favor.

Skilled Workforce & Business-Friendly Labor Market

Belgium has a multilingual, highly skilled workforce. Many professionals speak Dutch, French, German, and English. This makes it easier for international businesses to hire locally and work across borders.

Still, Belgium’s labor market has its challenges. The Employment Law Complexity Score is 2 out of 10. Labor laws are strict and offer strong employee protections. Terminations can be complex and costly. Employers must also follow detailed procedures when hiring or changing work terms.

The Union Complexity Score is 1 out of 5. Belgium has powerful labor unions. Companies often deal with collective bargaining agreements (CBAs) and formal social dialogue. These bring stability, but also add time and structure to workforce decisions.

Labor costs are also high. The employer’s social security contribution sits around 27%, one of the highest in Europe. These costs are tax-deductible, but they impact hiring budgets. Companies must factor this in when planning growth.

Belgium’s labor market balances strong talent with strict rules. If you’re prepared for the regulations, you’ll find a workforce that’s smart, reliable, and ready to contribute.

What is a Legal Entity?

A legal entity is a company or organization that has its own legal rights and responsibilities, separate from its owners or members. This means it can enter into contracts, sue or be sued in a court of law, and file tax returns independently.

One of the key benefits of forming a legal entity is the protection it offers for personal assets. By creating a legal separation between the business and its owners, personal assets are shielded from business liabilities and regulatory penalties. This separation is crucial for managing risk and ensuring long-term stability.

Choosing a Business Structure

Choosing the right business structure is a critical decision for any entrepreneur or business owner. The business structure you select will influence your day-to-day operations, tax obligations, and personal liability.

It affects how much you pay in taxes, your ability to raise capital, the amount of paperwork you need to file, and the level of personal liability you face. Before registering your business with the state, it’s essential to carefully consider which structure best aligns with your business goals and operational needs.

Comparing Business Structures

Comparing business structures is essential to determine which one is best for your business in Belgium. The following table provides a guideline to help you understand the differences:

Business Structure	Self-Employment Tax	Personal Tax	Limited Liability
Sole Proprietorship	Yes	Yes	No
Partnership	Yes	Yes	No
LLC	Yes	Yes	Yes
Cooperative	No	Yes	Yes

How to Set Up a Business in Belgium

Starting a business in Belgium means making some key decisions early on. One of the most important is choosing the right legal structure for your business entity. This affects your liability, taxes, and how you operate day to day. The legal form of your business structure is crucial as it categorizes your business entity within legal and regulatory frameworks.

Limited liability companies are significant in various jurisdictions, as they provide a balance of flexibility and protection for business owners. Belgium offers several options, but most foreign businesses go with the Private Limited Liability Company (BV/SRL).

The term ‘private company’ is used in different jurisdictions to denote specific types of business entities, such as ‘Sendirian Berhad’ in Brunei for a private limited company. Here’s what you need to know.

Private Limited Liability Company (BV/SRL)

The BV/SRL is the most common choice for foreign companies. It offers flexibility and limited liability. There’s no minimum share capital, which makes it easy to start. It’s a good option for small and mid-sized businesses that want room to grow and protect personal assets.

In various jurisdictions, the term ‘private company’ is used to denote different types of business entities, such as ‘Sendirian Berhad’ in Brunei, which signifies a private limited company.

Public Limited Company (NV/SA)

The NV/SA is designed for larger businesses. It requires more starting capital and supports multiple shareholders. This structure works well for companies that plan to raise public funds or scale quickly. It also comes with stricter rules on governance and reporting.

Cooperative Company (CV/SC)

The CV/SC suits businesses with shared ownership. It’s often used for joint ventures or social enterprises. Members share responsibilities and profits. It’s a flexible partnership option for teams focused on collaboration or community goals.

Branch Office

A branch office is an extension of a foreign company. It’s easier to set up than a separate entity, but the parent company stays fully liable. This setup works well if you want a local presence without full incorporation.

Sole Proprietorship

A sole proprietorship is simple and low-cost. But it comes with full personal liability. Your business and personal assets aren’t separate. Sole proprietors have complete control over their business operations. This structure works best for solo entrepreneurs with limited risk.

Operating as a sole trader can lead to personal liability issues, so it’s important to understand the difference between personal and business finances.

Incorporation & Compliance Essentials

Setting up a business in Belgium takes planning and time. On average, the process takes 2 to 3 months. You’ll need to register with the Crossroads Bank for Enterprises (CBE) and meet several legal requirements along the way. A partnership agreement is essential in defining the roles and responsibilities of business partners.

The legal form of your business structure is crucial as it categorizes your business entity within legal and regulatory frameworks. Sole proprietors can be held personally liable for business debts and legal issues.

Company Registration Process

To start, you’ll hold an incorporation meeting with a notary. At this meeting, you’ll sign the incorporation deed and define the company’s name, purpose, capital, directors, and registered office. This form applies to both BV/SRL (Private Limited Company) and NV/SA (Public Limited Company) structures.

You must also prepare a financial plan covering your business activity, startup capital, and expected performance for the first two years. If contributing capital in cash, you’ll need a bank certificate. The articles of association must match the region’s official language—Dutch, French, or both.

After this, your company must:

• Register with the CBE
• File the incorporation deed with the enterprise court
• Join a Belgian social insurance fund within 3 months

You don’t need a local director, but you do need a legal representative in person in Belgium for compliance.

Registering with the Crossroads Bank for Enterprises

Registering with the Crossroads Bank for Enterprises (CBE) is a crucial step in establishing a business in Belgium. The CBE is a public database that allows users to access information on registered entities and establishment units.

To register with the CBE, you will need to provide detailed information about your business, including the company name, address, and business activities. This registration ensures that your business is recognized legally and can operate within the regulatory framework of Belgium.

Obtaining a Company Number

Obtaining a company number is a mandatory requirement for registering with the CBE. A company number is a unique identifier assigned to your business by the CBE, which is used for all official and legal purposes.

To obtain a company number, you must register your business with the CBE and provide the necessary information. This number is essential for all business transactions and compliance with Belgian regulations.

By understanding the different types of legal entities and choosing the right business structure, you can set a solid foundation for your business in Belgium. Registering with the CBE and obtaining a company number are critical steps in this process, ensuring that your business is legally recognized and compliant with local regulations.

Bureaucracy and Legal Complexity

Belgium has one of the most bureaucratic systems in the EU. You’ll face detailed financial reporting rules, tax compliance requirements, and regional differences. Language rules and regional laws vary between Flanders, Wallonia, and Brussels, which can add complexity.

The country’s multi-layered government structure and jurisdictions means you may need to follow both federal and regional rules. Working with a local expert helps you avoid mistakes and stay compliant.

Political Risk

Belgium scores 5/5 for political stability. It’s a safe and predictable place to do business. However regional politics still affect regulations. Flanders, Wallonia, and Brussels often take different approaches. Coalition talks can also take time, which may slow down new policies.

A new right-leaning coalition government is now in place. This brings more clarity on policy direction but also points to tighter fiscal reforms. Public spending on infrastructure will likely take a hit. Renewable energy projects could see cuts, especially as the new government shifts focus to nuclear power—a clear change from past leadership.

Even with these challenges, the infrastructure market continues to grow. It expanded by 2.6% in 2024 and is expected to rise by 2.8% in 2025. That’s faster than overall GDP growth. Over the next decade, construction is set to grow by just under 2.4% per year in real terms.

Social Security and Labor Rules

Labor laws are strict, and employer social security contributions are high—around 27%. But these payments fund strong employee protections, like healthcare and pensions.

The Pension and Union Complexity Score is 1/5, meaning the system is clear, though unions are active. Employers must comply with national and sector-level labor agreements.

Belgium is a reliable place to expand your business. But you’ll need to navigate complex regulations and regional differences. The BV/SRL is the most flexible structure for most foreign companies. With the right local support, you can set up smoothly and stay focused on growth.

Financial & Banking Considerations

Belgium has a solid financial system. It scores 5/5 for financial infrastructure. Banks are stable, and businesses can tap into the wider EU network. There are no currency controls. EU rules govern all financial transactions.

Tax and accounting, on the other hand, can get complicated. Belgium scores 6/10 here. The system requires frequent reporting and close attention to detail. Companies must follow EU regulations, plus IFRS, US GAAP, and local GAAP.

You need a clear view of your current and deferred tax positions. That includes uncertain tax positions too. Without it, mistakes can slip through. These often lead to restatements—usually flagged during regulatory reviews by the SEC or EU authorities.

Most errors come from tight deadlines, stretched teams, or a lack of local tax knowledge. To stay ahead, set up a solid tax accounting strategy. Make sure your reporting is accurate, and your team knows the rules. It helps you avoid fines and plan better for the future.

Things To Consider When Expanding into Belgium

Belgium might look small on the map, but doing business there is anything but simple. Regional rules, strict labor laws, and shifting office costs can catch you off guard if you’re not prepared. The good news? With the right strategy, these challenges are manageable. Here’s what to keep in mind before making your move.

Immigration & Work Permits for Foreign Employees

Belgium scores 3/5 for immigration complexity. Rules differ by region – Flanders, Wallonia, and Brussels each set their own. Employers must sponsor non-EU workers, and the process takes time and planning.

Belgium uses a Single Permit system. It combines the residence and work permit into one. This makes it easier to hire non-EU employees for stays over 90 days. However, employers still need to meet all legal obligations.

EU and Swiss nationals don’t need a permit. Everyone else does. Applicants must apply through regional employment agencies. Each region has its own portal and forms.

The system isn’t too difficult, but it’s not one-size-fits-all. Start early, check the regional rules, and stay on top of the paperwork.

Cost of Living & Office Space

Office costs vary across Belgium. Brussels is the most expensive, but other cities like Antwerp, Ghent, Liège, and Leuven offer more affordable options. Hybrid work and inflation are also changing how businesses use space.

• Brussels: It’s the priciest city for office space. But you get direct access to EU institutions and more than 1,500 international headquarters. It’s a strong choice for companies that need visibility and political connections.
• Antwerp: Office space costs less than in Brussels. The city has over 50,000 students and a steady pipeline of skilled, multilingual workers. It’s known for strong programs in logistics, tech, and fashion.
• Ghent: You’ll find lower leasing costs and a strong research network. Universiteit Gent and Tech Lane Ghent Science Park support startups and high-tech companies. It’s a good fit for innovation-focused businesses.
• Liège and Leuven: Both cities offer cheaper office space while keeping you close to talent and infrastructure. They work well for companies looking to cut costs without giving up quality.

Office costs in Belgium fell by 4% in 2022, but inflation and rising energy prices could drive them up by 14% to 23%. At the same time, hybrid work is pushing many businesses to rethink their space needs. Choosing the right city now means balancing cost, access to talent, and long-term flexibility.

Regulatory & Compliance Risks

Belgium has a tight regulatory environment. To stay compliant, you’ll need to keep a close eye on employment laws, data protection rules, and regional differences.

Strict employment regulations
Termination laws are rigid. Employers must follow clear steps and provide severance pay. Contracts and HR documents also need to be written in the correct language – something that changes depending on the region. It’s easy to slip up without a structured HR process in place.

Data protection and GDPR
If you’re handling EU customer data, GDPR applies. Belgium enforces it through the 2018 Data Protection Act, which was updated in 2024. It includes specific rules for sectors like law enforcement and national security.

The Belgian Data Protection Authority oversees enforcement. In 2023, new laws gave it more independence and improved how it handles cases. A recent court ruling challenged the way it decides on the language used in legal proceedings, so more changes are expected.

Regional regulatory differences
Flanders, Wallonia, and Brussels don’t follow the exact same rules. This affects how you handle taxes, labor laws, and reporting. What works in one region might not work in another.

Overall, Belgium’s legal system is solid but complex. You’ll need to stay flexible, know the local rules, and adapt your approach depending on where you operate.

How GEOS Simplifies Your Expansion into Belgium

As they say in Belgium, “Met de deur in huis vallen” – let’s get straight to it. Expanding your business in Belgium isn’t simple. The rules are strict. The regions are different. And the paperwork can pile up fast. GEOS helps you cut through all of it. You get a clear setup and full compliance from day one.

End-to-End Entity Setup & Compliance Management

GEOS handles the full process. That includes registration, tax filings, and legal compliance. You don’t need to deal with multiple agencies or figure things out on your own. GEOS also helps you appoint a local legal representative. That’s required by Belgian law—and they make it easy.

AI-Powered Global Expansion Support

Meet Geovanna. She’s your AI-powered assistant for global expansion. Geovanna gives quick, reliable answers on what to do and when to do it. From compliance steps to local rules, she keeps you one step ahead—without the guesswork.

Is Belgium the Right Fit for Your Business?

Belgium scores 59.6 on the GEOS Global Subsidiary Index. It’s a solid choice for accessing the European market. You get skilled talent, a strong infrastructure, and a central location.

Move forward with a clear plan. Contact GEOS for a strategy built around your goals.

This article does not constitute legal advice.